This, according to a Moody's report. Nationally, home prices are expected to rebound by 2021. Rebound, or recover, in this case means a return to the peak prices of 2006. Also according to the Moody's report, these dates are for a rebound in nominal prices; an inflation adjusted recovery would take even longer to occur. The full story is here. Not mentioned in the report is shadow inventory, which remains a problem around the country. If home prices follow the "Japan scenario" (i.e., years of deflation), as I think they might, then it is possible they will slip to pre-1995 levels on a nominal basis.
On the left is a chart from the Moody's report, lsiting the expected recovery date for some of the worst impacted cities in the housing crisis.
Comments